Congress Enacted Legislation in 1933 to Regulate the Securities Industry

question 23

Multiple Choice

Congress enacted legislation in 1933 to regulate the securities industry and prohibit various forms of fraud with securities.The Securities Exchange Act of 1934 was passed a year later.This law created the Securities and Exchange Commission (SEC) as an independent regulatory entity whose function is to administer the two laws.The SEC has generated rules and regulations to administer these acts.These rules and regulations are

• A)statutes.
• B)administrative law.
• C)executive orders.
• D)common law.

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Definitions:

FOB Destination

A shipping term indicating that the seller is responsible for the goods and the cost of shipping until they are delivered to the buyer's specified location.

Physical Inventory

The process of counting and verifying all the physical goods and merchandise a company has in stock at a particular time.

Cost of Inventory

The total cost incurred to acquire inventory, including purchase price, taxes, and transportation.

Condensed Income Statement

A simplified financial statement summarizing a company's revenues, expenses, and net income, without detailed line items.